NEW DELHI: The S&P BSE Sensex started flat but with a positive bias in morning trade on Tuesday, led by gains in HDFC Bank, RIL, Axis Bank, HDFC, and L&T.
The Nifty50 reclaimed its crucial level of 8100 supported by gains in realty, power, oil & gas, metal, consumer durable, and capital goods stocks.
“Volatility is foreseen in the market in the F&O expiry week. Developments in the euro zone will be the decisive factors for future market developments. A favourable monsoon outcome, improvement in corporate earnings, the possibility of the US Fed not raising key rates in the near future will be positive triggers, going ahead,” said Gaurang Shah, Vice President, Geojit BNP Paribas.
The broader market outperformed the benchmark indices with the BSE Midcap and Smallcap indices trading 0.34 and 0.40 per cent higher, respectively.
Market @ 9:20
The 30-share index was trading at 26451, up 50 points or 0.18 per cent. It touched a high of 26,458.11 and a low of 26,378.46 in morning trade.
The Nifty50 was trading at 8113 up 20 points or 0.23 per cent. It touched a high of 8,115.70 and a low of 8086.85 in the first 30 minutes of trade.
The S&P BSE Midcap Index was up 0.40 per cent and BSE S&P Smallcap Index was trading 0.55 per cent higher.
Bharti Airtel (up 0.85 per cent), Axis Bank (up 0.72 per cent), HUL (up 0.70 per cent), Adani Ports (up 0.68 per cent), Coal India (up 0.65 per cent) were the major Sensex gainers.
Tata Motors (down 1.3 per cent), Wipro (down 0.85 per cent), Infosys (down 0.75 per cent), ICICI Bank (down 0.4 per cent), and Tata Steel (down 0.43 per cent) were the major index losers.
Five things you must know about today’s market:
Technical charts suggest Nifty may touch 8,400 level: Some analysts believe the downside looks limited and there are good chances that Nifty50 may move up to 8,400 level in the near future.
“The 8,000 level is Nifty50’s 50-day moving average and I believe till the index trades above this level, the trend will remain positive. The Nifty50 is trading above 50-day, 100-day and 200-day moving averages and it can rule in the 8,200-8,250 range over the next few sessions. So even at current levels, one can take a long call on the Nifty50. But you need to keep a big stop loss below 7,990 owing to the volatility,” said Manas Jaiswal, Manas Jaiswal Technical Research Group
However, not all experts are bullish.
“As long as the 8,150 level is not being taken out, I would not turn bullish on the Nifty50. In fact, my bias is slightly on the negative side. While the market might be choppy, midcaps and the broader market should continue to do well,” said Mitesh Thacker of miteshthacker.com .
Markets to start building in Q1 earnings: Apart from continuous global news flow, all eyes would be fixated on June quarter numbers, the progress of monsoon and the monsoon session of Parliament in the near future.
“It is a pretty busy calendar for us over the next two to three months, but Brexit is something that is yet to pass. It is a long-term concern and will keep rearing its ugly head from time to time,” said P Phani Sekhar, Fund Manager – PMS, Karvy Stock Broking.
As for earnings, Shekhar said, “We should be doing close to 11-12 per cent on the bottom line. That is something, I guess, that should come as a pleasant surprise to the market.”
Asian Markets stay mixed: Most Asian markets were trading mixed this morning.
Japan’s benchmark Nikkei was trading 0.01 per cent higher at 15,311. China’s Shanghai Composite fell 0.22 per cent to 2,842. Other Asian indices, including South Korea‘s Kospi (up 0.26 per cent) and Taiwan‘s TWSE (up 0.10 per cent) were trading higher.
US stocks fell on Monday: US stocks recorded their worst two-day drop in about 10 months. The Dow Jones Industrial Average lost 260.51 points, or 1.5 per cent, to close at 17,140.24. The S&P500 index slid 36.87 points, or 1.81 per cent, to 2,000.54. The Nasdaq Composite dropped 113.54 points, or 2.41 per cent, to 4,594.44, ahead of the US GDP data scheduled for Tuesday.
Brent crude prices hit a 7-week low: Crude prices tumbled nearly 3 per cent on Monday, with Brent hitting a seven-week low, as a rallying dollar and market uncertainty over Britain‘s shocking vote to exit the European Union threatened to sap strength in the oil rebound,Reuters reported.
Brent crude for September delivery settled down $1.25, or 2.6 percent, at $47.16 a barrel. It fell to a seven-week low of $46.69 during the session, the report said. US crude, on the other hand, fell $1.31, or 2.8 per cent, to settle at $46.33.